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Income taxes could be even lower if you tax deductions for, e.g., health expenses, business expenses, mortgage interest, etc. But after state and city taxes, most folks will be approaching the limits for the Alternative Minimum Tax.

If you're just deducting state income tax, married individuals should claim the standard deduction--in that case, they net $119,687.10, which is about $580 more.

Married individuals obviously need to recalculate with their spouse's income for this to be of much use.

This includes a $10,000 year-end bonus, so this gives an annual comp estimate but not a paycheck calculator.

This doesn't include any credits, though I don't believe any would typically apply, except the education credits in your stub year.

Please let me know if this is about right.

Last edited by WhirledWorld on Tue Oct 22, 2013 4:31 pm, edited 4 times in total.

Income taxes could be even lower if you tax deductions for, e.g., health expenses, business expenses, mortgage interest, etc. But after state and city taxes, most folks will be approaching the limits for the Alternative Minimum Tax.

Married individuals obviously need to recalculate with their spouse's income for this to be of much use.

This includes a $10,000 year-end bonus, so this gives an annual comp estimate but not a paycheck calculator.

This doesn't include any credits, though I don't believe any would typically apply, except the education credits in your stub year.

Please let me know if this is about right.

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Can someone help me figure out how to ballpark spouses income? If I'm making NYC standard for a first year, and according to the above my after tax is $115k, and my spouse makes 40k, what is the after tax on that? Like 25k?

Hutz_and_Goodman wrote:Can someone help me figure out how to ballpark spouses income? If I'm making NYC standard for a first year, and according to the above my after tax is $115k, and my spouse makes 40k, what is the after tax on that? Like 25k?

Assuming you both claim the standard deduction, you start off with 119,687.10 after taxes. Then you just add your wife's income at the marginal tax brackets:

You'd pay 6.85% of the 40k to NY/NJ State income tax = 2740

1.45% to the Medicare tax = 580

6.2% to Social Security on the spouse's income = 2480

If you live in the city, you pay 3.648% on the 40k to the NYC income tax = 1459.20.

28% of the 40k (less 3800 for your spouse's personal exemption) to the federal government = 10,136

So if my math is right, you'd pay a total of $15,936 (in NJ) on the 40k. In NYC, it'd be $17,395.20. (in NYC).

So net annual pay in NJ would be $143,751.10. In NYC, it'd be about $138,388.11 because you'd pay an extra 7448.60 in NYC income tax, but you'd be able to deduct that off your federal income tax.

Couple caveats:

Like before, this math is before things like insurance, 401k contributions, paying back salary advances, etc. Your actual expendable income will be lower.

I checked and 40,000 won't bump you up into any higher tax brackets. But for those with spouses making over $53,050/yr, your income will hit the 33% federal tax bracket for all income above that marker.

I did the math incrementally (i.e. I took the baseline results from the first post and just added the spouse's income on top). Not sure if that would give different results than plugging 210,000 into the equations, but if you really care you can double check the math (the equations are all in the second post).

Last edited by WhirledWorld on Sun Oct 27, 2013 1:12 pm, edited 2 times in total.